Senmiao Technology Ltd. (AIHS), a company engaged in the automobile transaction and related services business, has seen an increase of 8.41% in the premarket trading session. Consequently, AIHS stock is trading at $0.77 at the time of this writing. On Wednesday, AIHS stock gained 25.99% in regular trading hours and closed the day at $0.71. This continuous rising trajectory is due to the intensive buying from short term investors. Such a short term trend could lead to a decline in AIHS stock during the next few months. Let’s have some discussion about recent developments of AIHS stock.
AIHS announced operating results of the riding platform
AIHS announced the operating metrics for its online ride-hailing platform for August 2021 on 15th September. In August, the company reported 0.53 million completed orders. During July, there were 1.7 million completed orders. The decrease was the consequence of a new contract between Senmiao and shanghai Lutuan Technology, an affiliate of Meituan. That was announced on the 14th of September. According to the contract, the online ride-hailing orders would have to be completed on Meituan’s platform while the Senmiao network of cars and drivers would be utilized in that regard. The company leased cars to about 1200 drivers in Chengdu during August 2021. Those drivers operated their online ride-hailing businesses through the Meituan platform under the terms of the new agreement. Senmiao also initiated the services with Gaode Maps in Guangzhou. The company reported over 55000 completed orders and 48000 new registered drivers in the city for the month. The company reported that since the launch of its ride-hailing platform in October 2020, almost 12.7 million rides have been completed via its platform.
Q2 2021 financial results
On 2nd September, AIHS reported the quarterly results for the first quarter of the fiscal year 2021, which ended 30th June. According to the details, the company posted total revenue of $1.9 million during the quarter, an increase of $1.1 million when compared with the equivalent period of 2020. The net loss which company suffered from the continuing operations was $7.4 million. Compared to that, the net loss during the equivalent period of 2020 was $2.3 million. The gross loss was $1.9 million for the quarter. During the equivalent period of 2020, the gross profit generated by the company was $0.3 million. The loss per share stood at $0.12, while during the equivalent period of 2020, it was $0.07. On 30th June, the company had cash and cash equivalents of $4 million.
What lies ahead for AIHS?
The performance of AIHS stock during the last year has been outstanding. The stock has increased by 52% during the last year. This proves that apart from short term performance, AIHS has shown stability in the long term as well. So, potential investors should keep a close eye on AIHS stock performance.